« previous next »

Author Question: Suppose real GDP is 14 trillion and potential real GDP is 14.4 trillion. An increase in government ... (Read 57 times)

fasfsadfdsfa

  • Hero Member
  • *****
  • Posts: 554
on: Jun 29, 2018
Suppose real GDP is 14 trillion and potential real GDP is 14.4 trillion. An increase in government purchases of 400 billion would cause real GDP to ________ potential real GDP (assuming a constant price level).
 
  A) be less than
  B) be more than
  C) equal
  D) There is insufficient information given here to draw a conclusion.

Question 2

The short-run Phillips curve is ________ than the long-run Phillips curve.
 
  A) flatter B) steeper
  C) less stable D) Both B and C are correct.


laurnthompson

  • Sr. Member
  • ****
  • Posts: 334
Reply #1 on: Jun 29, 2018
Answer to Question 1

B

Answer to Question 2

A


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Illicit drug use costs the United States approximately $181 billion every year.

Did you know?

Many of the drugs used by neuroscientists are derived from toxic plants and venomous animals (such as snakes, spiders, snails, and puffer fish).

Did you know?

In 1864, the first barbiturate (barbituric acid) was synthesized.

Did you know?

All adverse reactions are commonly charted in red ink in the patient's record and usually are noted on the front of the chart. Failure to follow correct documentation procedures may result in malpractice lawsuits.

Did you know?

Immunoglobulin injections may give short-term protection against, or reduce severity of certain diseases. They help people who have an inherited problem making their own antibodies, or those who are having certain types of cancer treatments.

Gossip and ridicule increase the status insecurity of this time of life. Gossip and ridicule increase the status insecurity of this time of life.
What is real and what is an illusion? What is real and what is an illusion?
Modern machinery has helped farmers increase yields Modern machinery has helped farmers increase yields
How an Increase in Income Inequality Affects the Desired Tax Rate How an Increase in Income Inequality Affects the Desired Tax Rate
Effect of an Increase in R&D in the Follower Country on the Steady State Effect of an Increase in R&D in the Follower Country on the Steady State
Let f be a real function with domain R. Suppose that for each ǫ > 0, there is a continuous ... Let f be a real function with domain R. Suppose that for each ǫ > 0, there is a continuous ...
Video: Studying the Left and Right Brain Independently

For a complete list of videos, visit our video library